Apr 9 2024: Oil prices stabilized on Tuesday after a decline, as prospects for a ceasefire between Israel and Hamas in Gaza faded. Brent crude futures rose by 5 cents to $90.43 per barrel by 1309 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell by 10 cents to $86.33.
The previous session witnessed Brent’s first drop in five sessions and WTI’s first in seven, initially buoyed by optimism from ceasefire talks in Cairo. However, optimism waned following Israeli Prime Minister Benjamin Netanyahu’s announcement of plans for Israel’s invasion of the Rafah enclave in Gaza.
Continued conflict raises concerns about potential involvement of other countries, notably Iran, the third-largest producer in OPEC and a supporter of Hamas. Turkey also announced export restrictions to Israel until a ceasefire is achieved, prompting Israel’s retaliatory measures.
Further tightening the market, Mexico’s Pemex reduced crude exports by 330,000 barrels per day (bpd) to prioritize domestic refineries, cutting supply to U.S., European, and Asian buyers.
Investors are monitoring U.S. and China inflation data and the European Central Bank’s interest rate decision for economic signals. PVM analyst John Evans noted challenges in assessing inflation control amid the oil rally.
Vitol CEO Russell Hardy predicted oil prices to fluctuate between $80-100 a barrel, expecting a 1.9 million bpd oil demand growth in 2024.
